Gallison bill would tax LNG into oblivion

This general assembly press release shows just why I really enjoy having Ray Gallison as one of Portsmouth's reps. He's been unrelenting in his opposition to LNG, and this (undoubtedly half-serious) proposal makes the commmunity's feelings completely clear. Enjoy the whole release. Thanks, Rep. Gallison!

Gallison bill would make LNG shippers pay the outrageous expense of defending R.I. from their risks

STATE HOUSE – Rep. Raymond E. Gallison Jr. has submitted legislation that would require LNG tankers traveling through Rhode Island waters to pay millions to local municipalities each time they pass, post enormous bonds and carry $1 billion in liability insurance.

The goal of the legislation, which is scheduled for a hearing before the House Environment and Natural Resources Committee Thursday at the rise of the House session in the House Lounge, is to stop the proposed offshore liquefied natural gas (LNG) offloading facility proposed in Mount Hope Bay by Weaver’s Cove Energy LLC and Hess LNG.

“I don’t know how we can make it any clearer to Weaver’s Cove and Hess LNG that this is not welcome here. Every city and town and practically every organization that has an interest in the bays, the environment or public safety in the area has come out to fight against this facility. If this is what it takes to shoot down this loathsome proposal, this is what I’ll do,” said Representative Gallison (D-Dist. 69, Bristol, Portsmouth), an ardent opponent of the project.

Under the legislation (2010-H 7608), the operator of each LNG vessel traveling through Rhode Island waters would have to pay $1 million per trip to each shoreline city and town it passes, and Roger Williams University, both as the ship enters Rhode Island waters and as it exits. That money is meant to assist Newport, Jamestown, Middletown, Portsmouth, Bristol, Tiverton and Warren – all of which are along the route LNG tankers would be expected to take en route to the proposed facility off the coast of Fall River, Mass., – with the cost of safety and security of the vessels.

The legislation expressly prohibits LNG tankers from trying to avoid the fees by employing their own private security forces instead of relying on government peace officers to enforce the tanker security zones.

On top of those fees, the tankers would be required to carry at least $1 billion in liability insurance, and post bonds for each transit under bridges along the route. The bonds would be $475 million for those going under the Pell Bridge and $225 million for those going under the Mount Hope Bridge.

Additionally, each LNG tanker would be required to have on board a certified and licensed Rhode Island pilot, an American master mariner and a minimum of five National Fire Protection Agency (NFPA) LNG-certified fire personnel. It would also have to be surrounded by four NFPA LNG-certified firefighting vessels as long as it remains in Rhode Island waters. The operator of the LNG tanker would pay the cost of these requirements.

Representative Gallison isn’t pretending that any LNG company would be able to comply with those regulations and remain profitable.

“It would be impossible, and that’s the point. It’s appropriate because it’s also impossible to bring LNG into Narragansett Bay and Mount Hope Bay safely. If Weaver’s Cove and Hess LNG are so insistent about pursuing this incredibly dangerous plan, they had better be prepared to pay for the outrageous expense preventing an accident that could endanger the thousands of Rhode Islanders who live and work along the coast,” said Representative Gallison. “The truth of the matter is that there just isn’t any practical way that Weaver’s Cove and Hess LNG can guarantee our safety when giant, super-flammable tankers are being brought through the bay, barely clearing the bridges and going through areas where a terrorist or someone else with a desire to harm people could easily hide within striking distance.”

Representative Gallison said he hopes the bill illustrates the incredible burden and risk that Weaver’s Cove and Hess LNG are trying to pass off on the public so it can profit from a new facility.

“Rhode Islanders don’t want this facility. We don’t want to be put in danger. And we certainly don’t want to bear the cost of defending ourselves from it while Weaver’s Cove and Hess LNG make money on it. If they want to build a facility that represents a huge public risk, they can pay to keep us safe from it,” he said.
— via GA press release

Comments

First off,

I work in the industry and want you to be assured that this cargo is safe. The average temp of LNG is -276 F it would take a nuclear bomb to blow it up. The ships are escorted and searched before they even get close to our shores(also there are lot more security in place on the shore). If a terrorist had a nuclear bomb they would most likely go to a populated area like a mall or a school.
Before the ships get here each crew member is ran through intelligence 96 hours prior to arrival offshore. Most of the crew have had these jobs for 20 years and are from ally countries(UK, Russia, Philippines)If this rep who seems about as smart as the mayor of Boston gets his way your gas Bill will go up an average $50-$100 per household. If this does not go through then it will come down about the same amount.
Providence has been bringing LPG(-76 F) into Downtown for 30 years without incident. Nobody in the industry wants to see anyone get hurt either as we work on these vessels all the time. Sad part is this Rep. Gallison probably is being paid by an OIL lobbyist and could care less about your welfare as much as he cares about his. The price of Oil will never come down if we keep the demand up. The Oil lobbyist are everywhere they even involved in Clean ocean action. Make sure this Rep has your best interest at Heart hear instead of his pockets! Oh By the way Clean Energy act was passed to forbid states from doing this so he would need a supreme court decision first, it wont matter what bill he draws up.
Keep your eyes open people dont forget if it cost more for big companies to bring in cargo it will cost more for you to get it.

Hi, thegreatsardino...
I'm not concerned about LNG in its liquid state. However, since it boils at -259F and is lighter than air, any failure of containment means diffusion of extremely flammable vapor. In the "terrorist" scenario, it wouldn't take a "nuclear bomb," but rather a couple of shoulder-launched missiles. There are more than enough of those rattling around the world's terrorist organizations.

But to tell you the truth, I'm actually not that concerned about terrorists. What terrifies me are what engineering consultant Charles Perrow calls "normal" or "system" accidents -- see his book "Normal Accidents," which analyzes these issues which arise in complex systems. When you have very complex systems where multiple parts all have to work together flawlessly (and which require appropriate monitoring and response by humans) there is always the risk of emergent problems which literally cannot be foreseen. It is often the case with aircraft accidents that only after the fact can the engineers look back and recognize how a series of small errors compounded to produce a catastrophic result. Given that the system accidents are fundamentally unpredictable, I personally feel it makes sense to mitigate risk by not running these things right by populated shorelines.

And I personally take offense at your suggestion that Rep. Gallison does not care about my welfare. I know Ray. He cares about people here in Portsmouth.

But let's just turn the tables for a moment, shall we? Using your own logic, someone like you -- who starts out by saying that they work in the industry -- clearly has an agenda. And by attempting to smear our elected representative, you show your true colors. Or at least, the true colors of your employers; a throwaway yahoo mail account looks to me more like a hired commenter than a real LNG worker who randomly stumbled on my blog and felt obligated to post.

But thank you for your comment.

Best Regards.
-j

Hello,
I take back my comment about your repersentive it might be not be fair although you would be surpised who is being paid by Oil companies these days.
I think also you should know or maybe worry that over a hundred LNG tank trucks go through Providence a day(I95). I personally dont care if that plan gets shot down or not just want you to know that in Boston they have been operating for 25 years and without any major incident. Meanwhile there have been three coal power plant explosions in the last two years. Take a guess who brings in more Coal than any other city in New England. You still have LPG's coming Providence why are you not scared of them or Amonia ships? I hope you are not one of those types that dont go outside and whipe the door handles off when other people use them. Planes are also unpredictable so I am not getting your point we still fly dont we? Can you name one major LNG incident in the last 20 years in the US? I dont want to sound Like I am trying to make fool of you or trying to disrespect you in anyway just trying to figure you and your logic out. I will check out the book you indicated. Cheers!

Hi, thegreatsardino...
It appears that your approach is to simply throw everything at the wall and see what sticks. Raise costs. Oil company payoffs. Coal. Wipe off the door handles? WTF?

Look, I'm reasonably sure, given the way you write, that you're sitting in an offshore content mill somewhere, paying the rent. And I'm happy that you have this gig, and if engaging in this discussion makes your boss happy, feel free to keep it up.

But let's be clear: system accidents are fundamentally unpredictable. Asking "name one that happened in the last 20 years" assumes the exact opposite. When dealing with emergent system issues, absence of evidence is not evidence of absence.

Best Regards.
-j